Premier League clubs' revenues hit a new record of �3.6 billion in the 2015-16 season, but top-flight teams still recorded pre-tax losses of �110 million, according to sports finance experts Deloitte.
The record revenues were nine percent higher than the previous top total of �3.4 billion posted in the 2014-15 campaign, with Manchester United and Manchester City responsible for more than half of the rise.
United's revenue grew to �515 million, which saw them top the Deloitte Football Money League for the first time since 2003-04 as the world's highest revenue-generating club
Increased wage costs, up by 12 percent to �2.3 billion, were the main factor in the combined losses of England's 20 elite clubs.
It is the first time Premier League teams have posted an aggregate pre-tax loss since the 2012-13 season.
Dan Jones, partner and head of the Sports Business Group at Deloitte, said: "The 2015-16 season saw Premier League clubs grow revenues by almost 10% to �3.6bn, with the two Manchester clubs alone responsible for more than 50% of the increase.
"Manchester United's participation in the 2015/16 UEFA Champions League, coupled with continued strong commercial revenue growth, resulted in a 30% increase in revenue to �515m.
"Our analysis reveals a return to pre-tax losses, following two consecutive years of pre-tax profits.
"However, it is worth noting that this is due to a small number of one-off 'exceptional' costs, and we fully expect that the Premier League's new three-year broadcast rights deal will see a return to record levels of profitability in the 2016-17 season."
Sky and BT paid a record �5.136 billion for the latest round of TV rights, a sum 71 per cent higher than the previous deal.